Both sides went into the first big fixture of the season with the absences of key players at Wembley. Sanchez and Ozil were Wenger's main omissions, while Conte lamented the injuries of Hazard and new signing Bakayoko.
New Gunners recruit Lacazette was lively from the start along with other attacking players such as Iwobi or Welbeck, who cranked up the pressure from the beginning.
The Nigerian winger awarded his side a first chance as he skipped past David Luiz to get to the byline, but his back pass for Lacazette was expertly intercepted by Courtois and was then scrambled wide.
Chelsea were unable to find an appropriate response to Arsenal's high pressure and, following a couple of half chances from Welbeck and Iwobi, Lacazette saw his curling effort cannon off the frame of the goal.
The match came to a standstill as Arsenal captain Per Mertesacker caught an elbow to the face and was unable to continue. Sead Kolasinac came on for the German, but the flow of the game was affected by the delay.
Chelsea benefitted from the pause in play as Willian fed a great cross-field pass for Pedro, the Spaniard forcing Cech into action for the first time in the 35th minute, with the keeper punching the ball away high at his near post.
But it was just seconds after the game resumed following the break that the Blues took the lead. Arsenal switched off after failing to clear a corner kick and Moses crept in behind the defence to take a touch in the six-yard box and fire past Cech.
Conte's team immediately took a step back after going ahead, and the Gunners searched for a way of breaking down Chelsea's firm defensive display.
Elneny had a couple of sights on goal, as did Welbeck, but Wenger saw how the time was beginning to run out for his team who had dominated for much of the fixture.
Xhaka fired Arsenal's first serious warning in the second half as he let fly a swerving effort from 25 yards which forced Courtois to get his finger-tips to the ball and send it behind for a corner kick.
The moment the game changed came in the 80th minute. With ten minutes to goal Pedro went in on a reckless challenge which caught Elneny from behind. Referee Madley took his time but finally decided to show him a straight red.
Conte was forced to find a new plan for his team to see out the remaining ten minutes, but the Italian could at least seek comfort in their advantage in the scoreline. However, it went from bad to worse as, from the very free kick Pedro gave away, the Gunners equalised.
Xhaka played the cross into the box and Kolasinac, who had replaced Mertesacker earlier in the game, headed past Courtois from close range. Arsenal continued to press for the winner, but it was a race against time with Chelsea willing to settle for the penalty shoot-out.
The 'ABBA' penalty shoot-out format was used for the first time competitively in England, and it began well for both sides as Cahill and Walcott scored their respective efforts.
Monreal then put the Gunners ahead before Chelsea gave the game away. First, Courtois surprisingly stepped up to take the kick and skied his shot, and immediately after Morata drilled his penalty wide.
Oxlade-Chamberlain and Olivier Giroud calmly found the back of the net by sending Courtois the wrong way, and Arsenal claimed the 2017 Community Shield.
It's all over here at @wembleystadium - and we've won the 2017 Community Shield!#AFCvCFC pic.twitter.com/oVWq4tJBDd
— Arsenal FC (@Arsenal) 6 August 2017
We've won the Community Shield for the 15th time #WeAreTheArsenalpic.twitter.com/qAurRiXaow
— Arsenal FC (@Arsenal) 6 August 2017